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  1. miopus says:


    Further to my comment the other day, I have been looking again at the NPE website for Kraken. It seems that although NPE do have 35% equity in the field, one of the JVs, Canamens Energy, has chosen not to participate in the forthcoming drill:

    I had not realised this (DMOR!) so thought others may not have too.

    As a consequence of this opt out, NPE and the other JV partner (Celtic Oil) are funding all the costs themselves. Any resources from the drill would be split between NPE and Celtic Oil. Canamen’s 35% share is being picked up entirely by NPE i.e. they have 70%, Celtic have 30%.

    HOWEVER, Canamens have a right to ‘buy back in’ to the well, if they like what they see, but will have to pay DOUBLE their share of costs: ie. they would pay 70% so NPE would get free ride!

    The drill is planned as an appraisal AND an exploration sidetrack to firm up hydrocarbons to the South and West of the field. There are 83mmbbl contingent resources in Kraken and 114mmbl prospective resources.

    In conclusion, if the Kraken drill is successful, it will be very good for NPE – they will EITHER get a free ride (on the assumption Canamens buy back in) OR they cop 70% of the upside from this drill.

    Hopefully the market will start taking an interest in Kraken in the next few weeks and will give some value in the sp. It’s NOT all about Catcher.

    Let’s drill!